This article sheds light on Total Value Locked (TVL) in the crypto world, a pivotal metric for assessing DeFi health and performance. It explores TVL’s importance, calculation methods, and limitations, offering insight for traders, investors, and analysts. Key questions addressed include the implication of TVL levels, its distinction from liquidity and market cap, and what constitutes a good TVL ratio. Designed for easy comprehension, this guide enhances decision-making by explaining the dynamics of user engagement, market sentiment, and protocol reliability within DeFi systems.